Civil Economy (Economia Civile) is an Italian-origin economic school of thought dating back to the 18th century, rooted in the works of Antonio Genovesi (1754), the first professor of economics in Europe. Revived and expanded by contemporary economists such as Stefano Zamagni, Luigino Bruni, and Leonardo Becchetti, Civil Economy opposes the reductionist view of Homo Oeconomicus and reintroduces the relational and ethical dimensions of economic life. This tradition conceives the market not as a battlefield of interests, but as a space of cooperation and reciprocity where profit coexists with virtue and mutual benefit. In Enlightened Management, Carboni and Kotler connect this philosophy to business practice, proposing an evolution from capitalism based on extraction to one based on generativity — the creation of value that benefits both people and the planet.

Civil Economy redefines the purpose and meaning of economic action by restoring ethics, relationships, and community to the core of value creation. Its guiding principle is that the economy must serve life, not the other way around. Economic growth, therefore, is not an end in itself but a means to enhance collective well-being and human dignity.

The model emphasizes:

1. Relationality – economic exchanges are also social interactions, grounded in trust and reciprocity.

2. Common Good Orientation – businesses act as civic agents that contribute to the flourishing of society.

3. Sustainability and Justice – prosperity must be environmentally sustainable and socially equitable.

4. Generativity – organizations should create new opportunities for others, rather than merely extracting value.

In Enlightened Management, Civil Economy provides the philosophical foundation for the P³ framework (People × Purpose × Planet = Prosperity). It suggests that companies are not isolated profit-seeking entities, but civil institutions that generate shared prosperity through collaboration and moral responsibility.

Italian Benefit Corporations and social enterprises embody Civil Economy principles by combining profit with purpose. For instance, Etica Sgr integrates ethical finance and environmental responsibility, while Coopfond and Banca Etica reinvest profits in community development, inclusion, and ecological transition.